Ambassador Vinay Kwatra has sought to dispel what he described as “myths” surrounding the Foreign Contribution (Regulation) Amendment Bill, 2026, as debate intensifies both within India and abroad. 

He emphasised that the legislation is designed to strengthen transparency and accountability in the regulation of foreign contributions, while safeguarding assets and ensuring religious neutrality.

The Bill was reintroduced in the Lok Sabha during the Monsoon Session. It amends the Foreign Contribution (Regulation) Act, 2010, with provisions that clarify the management of foreign-funded assets when an organisation’s registration is cancelled, surrendered or lapses.

Kwatra explained that such provisions have existed since 2010, and the 2026 Bill merely adds a designated authority to oversee these assets and introduces a mechanism for restoration. If an organisation regains its registration, all assets and unused funds are returned in full.

He highlighted statutory safeguards for religious properties, stressing that places of worship are protected. If a cancelled association has created property linked to a place of worship, that property is transferred to another FCRA-registered association of the same faith to ensure continuity of worship. This, he said, demonstrates the government’s commitment to religious neutrality.

Kwatra directly addressed claims that the legislation targets minority charities or religious groups. He insisted that the Act applies uniformly to all organisations, regardless of religion, community or ideology. Faith-based welfare activities, including religious education, maintenance of places of worship, and charitable work by organisations of every faith, remain eligible for foreign funding.

He also rejected assertions that the FCRA framework has curtailed NGO operations or reduced foreign inflows. On the contrary, he presented data showing that foreign contributions have grown steadily, rising from approximately $1.2 billion in 2010–11 to $2.67 billion in 2024–25.

India has over three million NGOs, but only a small fraction—around 14,450—hold FCRA registration. The overwhelming majority of civil society organisations operate outside the Act. Kwatra clarified that the law does not prevent anyone from accepting foreign charity, research grants or humanitarian aid, but requires registration, adherence to prescribed processes, and reporting of utilisation.

Placing India’s regulatory framework in a global context, Kwatra noted that several democracies have similar laws. The United States has enforced FARA since 1938 and FATCA since 2010.

Australia legislated in 2018, Canada in 2024, and the United Kingdom introduced its scheme in July 2025. The European Union is currently legislating. He argued that India’s measures are consistent with international practice.

Tracing the evolution of the FCRA framework, Kwatra recalled its inception in 1976 and subsequent updates in 2010, 2016, 2018 and 2020. The 2026 Bill, he said, is the next step in this progression, aimed at improving transparency, governance and clarity. He reassured that tens of thousands of registered associations continue to receive foreign donations for health, education, research, disaster relief and humanitarian work.

He underlined national security as the foundation of financial oversight in public and political spheres. Regulation of foreign financial flows, he said, is a sovereign measure aligned with modern democratic governance standards.

The proposed legislation provides that an organisation’s FCRA registration will cease upon expiry, non-renewal or refusal of renewal, and establishes a designated authority to supervise the vesting, management and disposal of foreign contributions and related assets.

The Union Government is expected to take up the Foreign Contribution (Regulation) Amendment Bill, 2026, for discussion in Parliament on 12 August.

ANI